Nortel Networks, a leading telecoms-equipment firm, fired its chief executive, Frank Dunn, and two top managers after it revealed that accounting errors could lead to a 50% reduction in last year's profits. Nortel's shares plummeted.

Computer Associates restated $2.2 billion in sales for the fiscal year 2000-01 after an internal probe into the software firm's accounting practices. A federal investigation of the company continues.

Global Crossing's shares plunged after the Bermuda-based telecoms firm said it would restate its profits for 2003, review its 2002 results and delay reporting this year. It admitted understating access charges to other phone companies.

Healthy profits

McDonald's reported supersized profits a week after the sudden death of its chief executive, Jim Cantalupo. The fast-food giant made $512m in the latest quarter, 56% more than a year ago, endorsing Mr Cantalupo's strategy of introducing a healthier menu.

Aventis succumbed to the advances of Sanofi-Synthélabo, a rival French drug company, after months of battling against a hostile takeover. It was won over with an improved offer of euro55 billion ($65 billion).

Boeing took its first order for its 7E7 Dreamliner—50 planes from All Nippon Airways—guaranteeing the launch of its new mid-sized jet. The Japanese carrier is likely to get a substantial discount on the $6 billion list price of the aircraft.

TXU agreed to sell its Australian operations to Singapore Power for some $3.7 billion and a gas pipeline to Energy Transfer Partners for $502m. It said that buyers were ready to pay over $1.8 billion for its Texas gas utility. The Texas-based energy firm will use the cash to pay off debt.

Out of the driving seat

Mitsubishi Motors' troubles worsened. Rolf Eckrodt stepped down as the firm's boss days after DaimlerChrysler, which holds a controlling interest in the loss-making Japanese carmaker, refused to provide a ¥250 billion ($2.3 billion) cash injection.

Honda Motor said that operating profits for the year to March 2004 fell by 17% compared with a year ago to ¥600 billion ($5.3 billion). Meanwhile, Nissan's operating profit grew by 12% to a record ¥825 billion.

Leaving present

Emilio Botín, chairman of Banco Santander Central Hispano, and two former executives were ordered to stand trial for the misuse of bank funds over a euro164m ($145m) severance package given to the pair. They left BSCH some time after the merger in 1999 of Banco Central Hispano, which they ran, and Banco Santander. The bank denies any wrongdoing.

Janus Capital agreed to cut its fees by $125m, pay a $50m fine and hand $50m to investors to settle allegations of improper trading of mutual funds. Amvescap, another American fund manager, inadvertently sent an e-mail to British investors suggesting that it expects a fine of $300m to settle similar charges.

Eliot Spitzer, the scourge of America's financial institutions, found a new target. New York's attorney-general issued subpoenas demanding information on payments to brokers by 12 big insurance companies.

Some Chinese banks said that they had been told to stop lending, as the country's authorities apparently tried to cool the economy. The authorities denied issuing such instructions.

Iraq made efforts to rebuild its shattered financial system by granting three foreign banks—HSBC, Standard Chartered and National Bank of Kuwait—permission to operate in the country. The governor of Iraq's central bank also said that the limit of six foreign banks operating in the country would be lifted.

The cotton club

In an interim ruling, the WTO sided with Brazil in finding that America's huge subsidies to its cotton producers violated its rules. Brazil claims that America paid $4 billion in subsidies in 2001 and 2002 for a crop worth just $3 billion. America expressed “serious concerns” and promised to appeal if need be.

America enjoyed another quarter of strong economic growth. Its GDP expanded by 4.2% at an annual rate in the first three months of the year compared with 4.1% in the previous quarter, only slightly less than expected. This left output 4.9% higher than a year earlier.